My Great Father and Mentor picked pieces of me off the Autumn Laden streets of Manhattan at the turn of the Millenium, and with unconditional love, he sewed and stitched endlessly till I reached a dynamic relative measure of perfection.
I am now a Porcelain Doll named Lockheed HayHeeHoo Macedon with potent insight on macroeconomics.

Thursday, October 14, 2004

The Catecholamine Trade

Here's how to make trading the USD/JPY a little more rewarding, and a bit more risky. High oil prices abound has been reaking havoc on both the US Dollar and Japanese Yen lately, with Oil closing once again today above $54 a barrel of crude. So if you're trading this East meets West pair, it's basically about choosing the lesser of two evils. It's been rangebound since mid May 2004, about a pitiful average of less than 100 pips a day, so to be quite frank, it's fucking as boring as Everybody Loves Raymond. So, here's what you have to do: for every 5 pip move in the pair that's in the money, you take one bump of cocaine or grounded up methylphenidate. For every 25 pip move in your favor, you do a line. If there's a retracement of 50%, take 1.0 mg of benzodiazepine(Ativan). So if you're short the Nips at 109.61, and the Land of the Rising Sun looks like it's approaching Dawn, do a speedline as your profit increases every 25 pips. If you're banking on Godzilla wooping Mothra's Ass, then wait until USD/JPY breaks below 109.00 and thereupon do three 3 inch lines staggered about 5 minutes apart. And so on. You can tweek these Bump and Line parameters to suit your time and tolerance horizon. I recommend using a 30 day hourly chart.